For EUR/USD to go lower then 1.1058 must break. 1.1058 is the current bottom. Then range becomes 1.1058 — 1.1002, 56 pips. A break below 1.1002 targets 1.0925 and 1.0891. The current range shortest term is found between 1.1058 – 1.1088, 30 pips. Notice ranges 56 pips Vs 30 pips. Next range breaks above 1.1088 is found at 1.1114 and 1.1138. The Forward line and upper range tops are found at 1.1232 and 1.1225. Our EUR/USD currently is in a very bad position. Its stuck between major support and resistance points and could easily fly either way.
Overbought begins at 1.1168 – 1.1171. The curve downslopes all the way through. To go higher then breaks must be seen at 1.1088, 1.1114, 1.1124, 1.1135, 1.1147, 1.1159, 1.1165, 1.1171. Because of EUR/USD current position, I would monitor closely the ranges and break points. I wouldn’t take a trade currrently until I saw a break. Since 1.1058 is the important bottom, a reversal could come at this point. The point 1.1114 is the big break above and should easily hold throughout Asia trade to Europe morning. Short is the way upon break first.
Every point mentioned here is perfect, perfectly calculated and all derived from our central bankers.
Brian Twomey, Inside the Currency Market, btwomey.com